Belrise Industries, a recent entrant on Dalal Street, saw its share price spike 6.5% intraday on Wednesday, September 17, reaching ₹154.33 apiece, following a positive outlook from global brokerage firm Investec in its latest report. Investec believes the company is well positioned for growth as it expands its OEM ties, rolls out new products, and improves ASP through premiumization.
Belrise Industries is an Indian automotive component manufacturer offering a wide range of safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
Investec has initiated coverage on the stock with a ‘buy’ rating and set a target price of ₹185 apiece, indicating an upside potential of 28% from its latest closing price. The target price also suggests a record high for the stock, as it exceeds the previous all-time high of ₹157 per share.
Apart from the 2W segment, the brokerage noted that the company is increasing its focus on the 4W segment, which it described as nascent but primed for rapid ramp-up. This is supported by the company broadening its product portfolio and securing multiple orders from CV and PV OEMs, an encouraging signal.
With these new order wins, improved technical expertise, and access to Japanese OEMs via the H-One and Mag-Filter acquisitions, Investec expects the company’s 4W revenue share to increase to 14% by FY28E, up from 9% in FY25.
The brokerage also stated that the 2W business is on a strong footing, supported by deepening engagement with OEMs, a broader portfolio (suspension, steering columns), an expanding client base, and improving industry tailwinds. It believes that premiumization in the 2W segment is an additional growth driver.
In addition, the company is diversifying beyond autos and has established a wholly owned subsidiary to pursue opportunities in the defense and aerospace sectors. It has already secured orders from two Indian defense OEMs as well as one Israeli defense OEM for their armored vehicle platforms.
Meanwhile, the company is planning to simplify its complex group structure involving multiple promoter-owned entities. The brokerage believes that this consolidation is likely to be value-accretive and could spur a valuation re-rating.
On the financial front, the brokerage forecasts Belrise to deliver a 30% PAT CAGR over FY25-28E. It values Belrise at 22x Sep’27E (20% discount to Endurance/in line with peers), arriving at a target valuation of ₹185 per share.
Stock up 54% from its IPO price
The stock made a healthy debut on Indian exchanges in May 2025, listing at ₹100 apiece on the NSE, an 11% premium to its issue price of ₹90, and ended the session with a gain of over 8% against the issue price. Currently, the stock is trading 54% higher than its IPO price.
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